The northern city of Hai Phong licensed South Korea's LG Electronics on September 10 to build a US$1.5-billion high-tech complex.

The complex, which will be located in the Dinh Vu Cat Hai Economic Zone, will manufacture products from air conditioners and vacuum cleaners to smart phones and TVs.

The electronic giant plans to complete the first phase of the project in four years, and the second phase, over the following six years. The complex is expected create about 20,000 jobs.

In March the South Korean firm announced the launch of a $300-million project in the Trang Due industrial zone, but it later hiked that to $1.5 billion after the government in June approved merging Trang Due with the Dinh Vu Cat Hai economic zone.

Firms with investments in this economic zone have been offered several incentives including a 10 percent corporate tax rate for the first 15 years of operation.